220+ Regions
Tax compliance handled automatically
30+ Payment Methods
Cards, wallets, and local methods
Zero Tax Filing
We handle all remittance
What Is a Merchant of Record?
A Merchant of Record is the legal entity that appears on your customer’s credit card statement and assumes responsibility for the transaction. When you use Dodo Payments as your MoR:- We are the legal seller — Dodo appears on bank statements and receipts
- You are the product creator — You build, price, and deliver your product
- We handle the back office — Taxes, disputes, compliance, and billing support
- You receive net payouts — Revenue deposited directly to your account
Think of a Merchant of Record as hiring a global finance team that handles invoicing, taxes, and billing in every country — without you lifting a finger.
Why Use a Merchant of Record?
Selling digital products globally means navigating VAT in Europe, GST in Australia, Sales Tax in the US, and countless other requirements. Each jurisdiction has different rules, rates, thresholds, and filing deadlines.| Your Responsibility | Without MoR | With Dodo as MoR |
|---|---|---|
| VAT/GST Registration | ❌ You | ✅ Dodo |
| Tax Calculation | ❌ You | ✅ Dodo |
| Tax Filing & Remittance | ❌ You | ✅ Dodo |
| Chargeback Liability | ❌ You | ✅ Dodo |
| PCI Compliance | ❌ You | ✅ Dodo |
| Multi-Currency Support | ❌ Complex | ✅ Built-in |
| Local Payment Methods | ❌ Integrate Each | ✅ 30+ Included |
PSP vs. MoR: Key Differences
Understanding the difference between a Payment Service Provider (like Stripe) and a Merchant of Record is essential.Payment Service Provider (PSP)
A PSP processes transactions but leaves you as the legal seller:Merchant of Record (Dodo)
An MoR becomes the legal seller, handling compliance end-to-end:With Dodo as MoR, we handle taxes, disputes, and compliance. You receive net payouts with zero paperwork.
Side-by-Side Comparison
| Aspect | PSP (Stripe, etc.) | MoR (Dodo) |
|---|---|---|
| Legal Seller | Your Company | Dodo |
| On Customer Statement | Your Name | Dodo |
| Tax Registration | ❌ You | ✅ Dodo |
| Tax Calculation | ❌ You | ✅ Dodo |
| Tax Remittance | ❌ You | ✅ Dodo |
| Chargeback Risk | ❌ You | ✅ Dodo |
| PCI Compliance | ❌ You | ✅ Dodo |
| Setup for Global | Complex | Simple |
Important: Both PSPs and MoRs handle payment processing. The key difference is who is legally responsible for tax compliance and transaction liability.
How Tax Compliance Works
Dodo handles the entire tax lifecycle automatically:1
Customer Location
We detect the customer’s country and determine which tax rules apply — VAT, GST, Sales Tax, or other local requirements.
2
Rate Calculation
The correct tax rate is calculated based on product type, customer location, and B2B/B2C status. EU business customers with valid VAT numbers get reverse charge applied.
3
Collection at Checkout
Tax is clearly displayed and collected at checkout. Customers see exactly what they’re paying.
4
Filing & Remittance
We file returns and pay collected taxes to the relevant authorities on schedule. You never see a tax form.
Revenue Flow
Here’s how money moves from customer to your account:Example Payout Breakdown
| Line Item | Amount |
|---|---|
| Customer Payment | $200.00 |
| Sales Tax (15% VAT) | −$30.00 |
| Dodo Platform Fee (4%) | −$8.00 |
| Payment Processing | −$0.60 |
| Your Payout | $162.40 |
When to Choose MoR vs. PSP
- Choose Dodo (MoR)
- Consider a PSP
Dodo Payments is ideal if you:
- Sell digital products, SaaS, or subscriptions
- Have customers across multiple countries
- Want to avoid tax registration headaches
- Prefer predictable, outsourced compliance
- Value speed to market over maximum control
- Don’t want to manage disputes and fraud
Many businesses start with a PSP and switch to an MoR as they scale internationally. Dodo offers migration support to make this transition seamless.
Frequently Asked Questions
What appears on my customer's credit card statement?
What appears on my customer's credit card statement?
Dodo Payments appears as the merchant. We include your product/brand reference where character limits allow, and customers receive detailed receipts showing your product information.
Do I still own the customer relationship?
Do I still own the customer relationship?
Yes. You control pricing, branding, product delivery, and direct communication. Dodo handles billing mechanics, but customers know they’re buying from you. Your brand appears prominently in checkout, emails, and invoices.
How does B2B VAT reverse charge work?
How does B2B VAT reverse charge work?
For B2B sales in the EU, customers can enter their VAT number at checkout. We validate it and apply reverse charge automatically — the tax shifts to the buyer’s VAT return instead of being collected.
Can I use my own payment processor?
Can I use my own payment processor?
Dodo operates as a complete solution using our payment infrastructure. This integration is what allows us to assume tax and fraud liability. We are working on providing an integration with other payment processors in the future.
How do refunds work?
How do refunds work?
Initiate refunds from your dashboard. We process the refund in the customer’s original payment method and currency. Tax amounts are automatically adjusted and reconciled.
What about my income tax?
What about my income tax?
Dodo handles sales taxes (VAT, GST, Sales Tax) on customer transactions. You remain responsible for your business’s income tax, corporate tax, and tax obligations on the payouts you receive.
Which countries can I sell to?
Which countries can I sell to?
We accept payments from 220+ countries and regions with continuous expansion. See the full list:
Supported Regions
View all 220+ countries and regions where we accept payments.